Five Basic Functions All Managers Perform Commerce Essay


Most experts agree that there are five basic functions all mangers perform, planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.

Planning: establishing goals and standard, developing rules and procedures d, developing plans and forecasting.

Organizing: Giving each subordinate a specific task, establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates.

Staffing: determining what type of people should he hire, recruiting prospective employee, selecting employee, setting performance standard, compensating employee, evaluating performance, counseling employees, training and developing employees,

Leading: getting others to get the job done, maintaining morale, and motivating subordinates.

Controlling: Setting standards such as sales quotas, quality standard, or production levels, checking to see how actual performance compares with these standards, taking corrective action as needed.

Human resource management is process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. Here we will discuss the concepts and techniques every manager need to perform the" people" or personnel aspects.

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Conducting job analysis(determines the nature of each employee's job)

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries (compensating employees)

Providing incentive and benefits

Appraising performance

Communicating(interviewing, counseling, disciplining)

Training and developing mangers

Building employee commitment.

And here we discuss what a manager should know about:

Equal opportunity and affirmative action

Employee health and safety

Handling grievances and labor relations

Now we have question that why are these concepts and techniques important to all managers Perhaps it's easier to answer this question by listing some of the personnel mistakes you don't want to make while managing.

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have you company taken to court because of discriminatory actions

Have some employee's thing that their salaries are unfair and inequitable relative to others in the organization.

Commit any unfair labor practices

Remember you can do everything else right as a manager laid brilliant plans, draw clear organization charts, setup modern assembly lines, but still fail, by hiring the wrong person or by not motivating subordinates. On the other hand, many managers' presidents, supervisors have been successful even with inadequate planes, organizations, or control .they was successful because they had the knack of hiring the right person for the right job and motivating, appraising, and developing them.


In providing this specialized assistance, the human resource manager carries out three distinct functions.

1-A line function. The human resource manger directs the activities of the people in his or her own department and in related services areas (like the plant cafeteria).

2- A coordinative function. Here he or she acts as "right arm of the top executive" to ensure that line managers are implementing the firm's human resource policies and practices

3- Staff functions. He or she advises the CEO to better understanding the personnel aspects of the company's strategic options. It plays an employee advocacy role, by helping to define how management should be treating employees.


The company's long-term plan for how it will balance its internal strengths and weakness with its external opportunities and threats to maintain a competitive advantage.

Strategic Human Resource Management:

Strategic human resource management means formulating and executing human resource Policies and practices that produce the employee competencies and behaviour the company needs to achieve its strategic aims. Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to advance business performance and develop organizational culture that promote innovation, flexibility and competitive advantage. In an organization SHRM means accepting and linking the HR function as a strategic partner in the formulation and implementation of the company's Strategies through HR activities such as recruiting, selecting, training and rewarding personnel.


Wisconsin based signicast corp.'s president, Terry Lutz, and his board decided to build a new, computerized plant. Sigicast produces metal parts from a casting process. The basic process is ancient, although Signicast has improved it dramatically. To complete, the firm needed the new, automated plant. Mr. Lutz and his team understood that in the real world, new automation technology requires a new kind of employee. They knew the computerized plant was useless without employees who could work in teams, manager their own work, and run the plant's computerized equipment. Lutz and his management team relied on sinicast's human resource management unit to select, train, and organize the teach-friendly people the new plant requirement. By formulating and executing the hiring and other personnel practices signicast needed to make the plant success.

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In practice, human resource managements' strategic role means several things. Ritz-Carlton and Signicast, human resource managers today are involved in partnering with their top managers in both designing and executing their companies' strategies. Today's focus on competitiveness and operational improvements also means that human resource managers must express their departmental plans and accomplishment in measurable terms. Top management wants to see, precisely, how the human resource manager's plan will make the company more valuable, for instance by boosting factory skill levels, and, thereby, improving performance.

Southwest Airline:

Most of the passengers boarding Southwest Airlines flight 172 from Orlando to Louisville probably aren't think much about how southwest keeps its prices low. Those who are may assume its southwest young fleet of planes or fuel buying policies but those aren't the main reasons. If they were, united and USAir could just copy southwest.

Southwest's real secret is its human resource management strategy. Strategic human resource management means formulating and executing human resource management policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. What are southwest are aims? Its basic aim is to deliver low-cost, convenient service on short-haul routes.

DELL Example:

The essence of Dell's competitive strategy has always been to be a low-cost leader. Dell's human resource managers use various HR strategies to support Dell's low-cost aims. For example, Dell delivers most of its human resources services, not through a conventional Human Resources department, But via the web. A Manager Tools section Dell's intranet contains about 30 automated web applications. This allows managers to perform human resource tasks that previously required costly participation by human resource personnel. The internet also check job posting, and monitor their total compensation statement. This reduces the number of human resource people required to administer these activities, and thus the cost of doing so. That in turn supports Dell's low cost strategy.

Strategic human resource management:

Managers use the term human resource strategies to refer to the specific human resource management courses of action the company pursues to achieve its strategic aims. For example, Dell The essence of Dell's competitive strategy has always been to a low- cost leader. That's why human resource managers' use various HR strategies to support Dell's low-cost aim Dell deliver most of its human resource services, not through a conventional human resource department, but via the web. A manager tools section on Dell's internet contains about 30 automated web applications. This allows mangers to perform human resource tasks that previously required costly participation by human resource personnel. The internet also check job posting, and monitor their total compensation statements. This dramatically reduces the number of human resource people required to administer these activities, and thus the cost of doing so. This is turn support Dell's low-cost strategy.

Strategic Human Resource Challenges:

Now a day's human resource managers face three strategic challenges.

1- One (as at Dell) is the need to support corporate productivity and performance improvement efforts.

2- Employees play an expanded role in employer's performance organizations like Toyota's-- such a high technology team-based production are largely useless without extraordinary high level of employee competence and commitment.

3- The third challenge is that employers see that their human resource units must be more involved in designing not just executing the company's strategic plan.

Today's stress on going competitive advantage through people renders such arrangements inadequate. Instead, top management needs the input of the human resource team in designing the strategy, since it is the team charged with hiring, training, and compensating the firm's employees. Human resource managers will therefore need a basic functional understanding of how the firm makes money. What activities and process are most critical for value creation as defined by customers and capital markets? Human resource professional need to understand the basis of strategic planning and of the basic business functions such as accounting, finance, production, and sales, so they can take their "seat at the table" when top management is crafting the firm's strategic plan.

What factors should management consider in HRM?


Recruitment is the process of searching for prospective employee and stimulating them to apply for jobs in the organization.

Recruitment Methods:-

Internal existing employee

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Supervisor/Manager Recommendation

Succession planning

Using Existing Contracts

Unsolicited Enquires

Previous Applicant

Previous Employees

Existing Employees Contracts.

External Contacts:-

Professional Referrals

Job Centers

Private Selection Consultants

Management Selection


Resettlement services

Temporary Agencies





Career Exhibitions

Conferences/Open days

2-Job Analysis:-

This is the process of getting detailed information about job. Here we give the importance of job analysis according to HRM.

The Importance of job analysis to HR Manager.

Job analysis has been called the building block of everything that the personnel department does.

Some of the human resource activities that use job-analysis information includes selection, performance, appraisal, training, and development, job evaluation, career planning, work redesign and human resource planning.

The Importance of Job Analysis to Line Manger:-

Manager must have detailed information about all the jobs in their work group to understand the work-flow process.

Managers need to understand the job requirements to make intelligent hiring decision.

Since the Manager is responsible for ensuring that each individual is performing his or her job manager must clearly understand the satisfactorily, the task required in every job.

Job Analysis Information

A job description is a list of the tasks, duties and responsibilities (TDRS) that the job entitles.

A job specification is a list of the knowledge, skills, abilities, and other characteristics (KSAO) that an individual must have to perform the job.

3- Training and Developing Employees.

The process of teaching new employees the basic skills they need to perform their jobs. This might mean showing a new web designer the intricacies of your site, a new salesperson how to sell your firm's products, or a new supervisor how to fill out the firm's weekly payroll sheets.

Here I again quote an example of Wisconsin-based Signicast Corp. Decided to build a new, high- tech plant, or computerized plant. Terry Lutz, the firm's president, know signicast would need a new type of employees to run that plant, and new screening and training programs to hire and train them.


The U.S armed Forces are taking army developed video- game-type training programmers called Full-Spectrum Command and Full- spectrum Warrior for training troops in urban warfare.

Honda example:

When Honda decided to build a new plant in Alabama, it had to hire thousands of new employees in an area where few people worked in manufacturing. Honda and the Alabama state employment agency first screened the applications by eliminating those who lacked the education or experience. And then gave preference to applicants near the plant. About 340 applicants per six-week session received special training at a new facility about 15 miles from the plant, two evening a week. It included classroom instruction, watching videos of current Honda employees in action, and actually practicing particular jobs. Finally HR department do the final screening. They interview the candidates, review their training record, and decide which ones to hire.

4- Performance and pay/Motivation and Incentives:

Financial rewards paid to workers, whose production exceeds some predetermined standard. Basically this system was started in late 80's.If any of the worker or employee gives the best of him; he/she should receive some reward in shape of pay increase or incentives.


Being a good manager, he should make some department or group which can help employee's problems. These problems can be helping new employees or helping the old staff with legal stuff or work issue. It can be personal issues as well. Like sometimes employees are having bad time in domestic life and cannot concentrate on their work. So these groups can help and guide the employee with more broad vision.


In SHRM this factor is very important to listen to the all employee's suggestions, whether the employee is new in the company or working in it for long. New comers sometimes bring new ideas with them; it might be from their previous work place or educational institute. And the old worker can help with their experience in the same work place. Good management always keeps on having employees meetings to keep them up to date and listen to all their new and good ideas.

7-Benefits and Services:-

Indirect financial and non-financial payments received by the employees for continuing their employment with the company. They include things like health and life insurance, pension, time off with pay, and child care assistance.

Verizon Example:-

Verizon communication, facing strong competition and the need to reduce its employees after several managers, needed a way to convince thousands of its employees to take early retirement. In this case, Verizon required a plan that was economically sensible, as well as one that complied with different laws that apply to retirement and other benefits.

8-Coaching / Mentoring

Employees are developed and educated through methods other than training classes and seminars. Chief among these are management responsibilities of coaching, mentoring, and building your organization into a learning organization. Find coaching, mentoring, consulting, knowledge management and how to build a learning organization resource.

Creating a Mentoring Culture

Build a Mentoring Culture

Coaching for Improved Performance

Leadership Success Secrets: Leadership Inspiration

Group Mentoring

Tips for Effective Coaching

Mentoring and Baby Boomers: Mentoring Is a Strategic Business Imperative

What Do You Mean My Company

9- Team Building / Work Teams

Employee participation, teams, and employee empowerment allow people to make decisions about their work. This employee involvement, teambuilding approach, and employee empowerment increases loyalty and fosters ownership. These ideas tell you how to do team building and effectively involve people. In this concept good or experienced managers built teams in which old and experienced employee's leads these teams and these peoples know system of the company and know as well how to do smart work that's why new comers follow these peoples and done better job in few days.